A

Research Report

ON

Effect of advertising on brand image of coca-cola

Submitted to

U.P. Technical University, Lucknow for the partial fulfillment of

MASTER OF BUSINESS ADMINISTRATION

Guided by: Submitted By: Miss .Deepti Tyagi Mayank Jain(MBA DEPT.) Roll No- 0722670028

D.J.COLLEGE OF ENGINEERING & TECHONOLOGY

MODINAGAR

(UP TECHNICAL UNIVERSITY, LUCKNOW)

(2008-2009)

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STUDENT DECLARATION

I Mayank jain under signed hereby declare that the research report on “ Effect

of advertising on brand image of coca-cola” complied and submitted under

the guidance of Miss. Deepti Tyagi is my original work. The empirical finding

in this reports are based on the annual reports of the company. While preparing

this report, I have not copied material from any report.

Mayank jain

M.B.A. IV Sem.

Roll No. 0722670028

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ACKNOWLEDGEMENT

Presenting a research project of this type is an arduous task, demanding a lot of

time. I cannot in full measure appreciate and acknowledgement the kindness

shown and help extended by various persons in this endeavor. I will remember all

of them with gratitude.

My sincere thanks are also due to Miss. Deepti Tyagi (Faculty of Management)

for their significant help extended for the successful completion of the project. I

highly the help I got from them in providing me and lot of information regarding

the functioning of this organization.

My sincere thanks are also due to Mr. Amit Tyagi (Head of Management) for

their significant help extended for the successful completion of the project. I

highly the help I got from them in providing me and lot of information regarding

the functioning of this organization.

I am always beholden to my God, for always being with me and showing me the

right ways, my family, for always doing favors to me and my friends and

colleagues consistently helped with encouragement and criticism throughout the

project work, for always lifting my sights to higher vision, raising my personality

beyond normal limitation and for realizing me my strengths and potential, as I did

not always welcome her exhortation, “try again; you can do better.” But this

project owes a great deal to it – and so do I.

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PREFACE

Research Project is the first step into the Industry and this of vital importance

because it provides first hand practical knowledge of business environment.

The Project helps us to get acquainted with the horizon of the corporate activities

like how the company is organized, what it produces, how the products are

manufactured, how the products are marketed, what is the Distribution channel,

how the department of marketing is organized and managed.

I got the opportunity to do the Research Project on “Effect of advertising on

brand image of coca-cola” in the field of Marketing. In this report Firstly, I am

trying to analyse Market for coca-cola company & their services. Secondly, I

have also made a Data Base which gives complete information about different

industries, it’s products and projects. Finally there are some recommendations,

which I think if implemented definitely will be fruitful for the company.

Mayank jain

M.B.A. IV Sem.

Roll No. 0722670028

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CONTENTS

TOPIC Page No.

Acknowledgement

Preface

Executive summary 6

Objective of the study 8

Introduction 10

History of the company 13

Preparation of the soft drinks 20

Comparative arena 25

Product Profile 43

Research Methodology 45

o Research design

o Data collection

Data Analysis & Interpretation 52

SWOT Analysis 61

Findings 65

Conclusion 67

Limitation 69

Recommendation & Suggestions 71

Questionnaire 74

Bibliography 77

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EXECUTIVE SUMMARY

I have done two surveys, one is Route Ride Survey and another one is advertising

of brand image survey.

In trade channels, I counted the types of channel from where the cold drink is

selling for example like Pan Shop, Tea Stall etc. and also the average sale of the

cold drink at that shop. I have also found out the percentage monopoly of coke

and Pepsi in these outlets. After that I have done another survey related to

advertising of products In these outlets in which we covered each and every

retailers at every route and we have to check that all the brands and packs of coke

are visible or not or which one is visible in comparison to Pepsi. At every route

we found some problems related to shortage of brands and problem of improper

visit of company officer’s to the retailers that’s why the retailers prefer to sell

Pepsi in comparison with Coke. And the other problem is that the retailers getting

product at cheaper cost in comparison form what they are getting from

distributor.

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OBJECTIVES OF THE STUDY

a. To ensure consumer requirement, their problems suggestions &

modifications.

b. Company advertising

c. Effect of advertising of brand image

d. Advertising policy

e. To know the daily sales figures of each brand.

f. To know dealer’s suggestion, comments what amore they require

from company.

g. To gather problems of modifications, alternation needed by average

consumers from company.

h. Position in soft drink market acknowledge about future brands

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INTRODUCTION

Moon Beverage Limited is a franchisee of Coca cola international which

manufacture coca cola products coca cola industry is a U.S.A. based

multinational company which produce soft drink and also interfere in the fields of

food (snacks). When India left the ban from the international soft drink

manufactures coca cola was the fist company who joined Indian market with

there tow flavour i.e. coca cola (Cola), 7 UP (clear lemonade). That time COCA

COLA have competition with only thumps Up. As coca cola starts to dominate

the thumps up products. In 1993 Coca cola international entered the Indian

market and had collaboration with thumps up. Now thumps up are the owned

brand of coca – cola.

They have joined Indian market with coke (cola) and fanta (orange). At present

there is a great competition in the field of soft drink industry and advertising war

is continue between COCA COLA & PEPSI. Both companies want to dominate

each other in advertising world. COCA COLA is one step ahead the Pepsi.

They are the global sponsors of cricket world cup 1999 while the coke was the

official cold drink of wills world cup 1996. But COCA COLA prepare a prepare

a brilliant aid with slogan “Nothing official about it” and gain a great advantages.

This competition is very god soft drink industry and consumer as well. At present

Coca cola and coke have balanced market share in Indian market.

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Coca cola also brought in celebrities which further emphasized their business all

over India. The most effective was with the introduction of Amitabh Bachan,

Shohrukh khan, kareena kapor and ricky martin. Further, coca cola is used to

sponsoring various corporate and cultural events all over India, which help to

create brand awareness among to user groups.

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HISTORY OF COCA COLA

Coca-Cola was formulated in 1886 by Dr. John Pemberton, a Pharmacist in

Atlanta, Georgia. The drink was sold ad refreshing elixir at the fountain

counter of Jacob’s Pharmacy of which Dr. John Pemberton was part owner,

unaware that the pharmacist had given birth to caramel colored syrup

which is now the chief ingredient of the world’s favorite drink. Today

the white-on-red flow of Coca-Cola is familiar sight in more then 195

countries. The syrup combines with the carbonate water to fuel a $16.2

billion corporation that has captured a 46% Slice of the global soft

drinks market. The company estimates that the drink is served more

than 773 million times every day and if all Coke ever produced were filed

in standard bottles and placed end to end it would wrap around the

equator 21, 161 times.

The story of Coca-Cola is a story of a drink and its charm with the

consumer. The story of ecstasy and again that the drink has caused to those

dedicated to its growth Pemberton first managed to sell and average of 9

drinks per day, though a shop called Jacob’s pharmacy, in 1891,

Candler bought Coca cola for $ 2,300. The year after align with four

companies he formed the Coca-Cola company with the initial stock of

$100,000. Coca-Cola was registered at the US patent office in 1893, and

began selling at soda fountains for 5 cents a glass of therapeutic 14

refresliment 1894, 1 got into bottles, courtesy a candy merchant Joseph

Boedenharn of Mississippi.

Five years later; the drink was being bottled on a regular basis under a

region wise frairclrising system; and its lus t competitor Pepsi cola, Coca-

Cola’s first bottling plant opened in Chattanooga, Tennessee followed by

another in Atlanta in 1900. The unique taste of cola was an outstanding

success. Over the next two decade the number of plants crossed 1000.

In a bit to difference the product, the company adopted 6.5 ounce, pale green

contour bottle designed by the root glass company of Terri Haute, Indiana.

Today it is an intrinsic part of the brand.

The company broadened its horizons when Robert Wood the son of a

banker who acquired to Company for $25 million in 1919, assumed charge in

1923. tie began by upgrading bottling operations, brought in innovations like

a six-bottle carry home carton, and gear 111) advertising support. It Was

Under Wood Ruff that the brand. Known affectionately as coke by now

associated it self with sportive events. By the early 1940’s the brand was

selling as the “real thing” to set it self apart from “me to” Cola’s.

As a time went by the company brought out some new aerated drinks. The first

one “Manta” appeared in the selves in 1960.

Its birth was an accident, the company’s German name is an attempt to

produce Coca Cola without some key ingredients, turned out into an

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orange flavored drink instead. Its strategists who feared the

dependence on just one put a cap on growth welcomed it. While Fanta

was being rolled out the company bought minute made corp. Which in

1967 was combined with Duncan foods to pave way for the Coca-Cola

foods. Several beverages followed the most notable being ‘sprite’, a

lemon drink developed in the late 1950 and formally launched in 1961.

Coca-Cola had diversified the company into businesses and it even had a

steam generator and boiler making division. Robert C Goizueta, Cuban born 27

years veteran took over as the Coca-Cola unlike Pepsi Company depended

on a single brand.

The best insurance policy that he figured was to let coke evolve to the

summer slacking it with variants, even reinventing if needed. In 1982,

the company launched what is now considered among the world’s most

successful brand extensions ‘Diet Coke’, under the leadership of Sergio

Zyman, the head of us marketing. The idea was to retain the loyalty for

the Health conscious drinker who loved the taste but hated the calories.

After this it came out with caffeine free versions of its main drinks. Yet

in the US the company kept losing ground to Pepsi. Zyman, a former

Pepsi marketer argued that the correct strategy was to replace 98 year

old with better tasting cola, label it as “New Coke” and blare the news

which is exactly what the company did more than a decode ago in 1985.

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But when placed on the shelves it did not budge. On wide spread protest it was

recalled after 79 days.

The company has about 100 brands in its portfolio but coke, Fanta and

sprite account for most of its sales. In 1994, the real thing’s coke sold

over 52.5 billion liters. For the taste of it diet coke along with Coca-

Cola light sold 8.5 billion liters, which makes it the world’s two top

non cola drinks sold over 6.5 billion liters each. Which sprite aimed at

the independent youngster two does not care what as others drink (the

as line “obey you’re a thrust”). In 1993, Coca-Cola reentered India

after a 16 years long exile, four years Pepsi made its debut India.

While Coke plays on brand nostalgia, Pepsi address the young crowd,

which unlike a in America is a dominate ort if the population here.

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A 100 YEARS OF THE CURVY GLASS BOTTLE OF

COCA COLA

Coca-Cola Company marks a mile stone on Wednesday, 24 th, March 1899

Chattanooga; where its first bottling plant was started 100 year ago by

two men struck one of the most lucrative business deals in US history.

Joseph Whitehead and Benjamin Thomas offered Coca-Cola Company

owner Asia Candler a dollar for the right to bottle soft drinks in 1899. Today

1 billion soft drinks are sold each day in more than 200 countries around the

world.

Candler had purchase what would become the Cola Company for $2,300

eight years earlier from John Pemberton, an Atlanta Pharmacist who

astonished the world.

Candler though the bottling venture would never succeed, but he signed the

contract with White Head and Thomas any way, “and the rest is history”,

Bob Lovell, vice president of marketing for Coca-Cola bottling Company.

United Inc., said in telephone interview from Chattanooga.

Lovell said Thomas had seen Cuban Fields hand drinking Pina Fria a

Pineapple beverages, from bottles while he was stationed in Cuba during Spanish

American War. When he returned to Chattanooga, he decided to pitch the

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idea of bottle soft drinks to coke, which was then sold only as a

fountain beverage.

“It occurred to that Coca-Cola in bottles would be very popular”,

Lovell said, “Mr. Candler did not see any future in it because the

containers were not sound, but that’s how it all came about. “Thomas

and Whitehead promised to pay one dollar for the right to bottle Coca-

Cola, but legend has it that no money changed hands.

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PREPARATION OF SOFT DRINKS

A soft drinks is a mixture of concentrated sugar syrup and treated water. The

factor that affect the soft drink industry and has resulted in the great competition

are:

a. Conversion of hard water to soft water: it is highly technical process,

which requires experienced personal, huge investment and quality of soft

drinks.

b. Impulse: soft drink business behavior is not governed by branch loyalty so

the emphasis is not only on creating the market but also on retaining it.

c. Availability: the availability of right brand at the right place and at the

right time is the main aim for wining consumers in soft drink business.

d. Seasonal business: the main consumption of soft drink is in summers and

hence most of the profits are to be made in this season only.

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SOFT DRINK MARKET IN INDIA

Today India is one of the most potential markets, with population of around

900 million people, the Indian soft drinks market was only of 200 cases per

year. This was very low even compared to Pakistan and Philippines.

Population and potential market are two major reasons for major

multinational companies of entering India. They feel that a huge

population coupled with low consumption can only lead to an increase

in the soft drink market. Another increase in the sale of soft drinks in

the scorching heat and the climate of India, which is suitable for high

sale of soft drinks. All these factors together have contributed to a 30%

growth in the soft drinks industry. If the demand continues growing at

the same rate, within two years the volume could touch 1 billion cases.

All these factors are the reasons for the entry two giant of the soft drink

industry of the world to enter the Indian market. These two giants

Pepsi and Coca-Cola, Themselves share 96% of the soft drink market

share. Rest is shared by Cadbury’s Schweppes, Campa Cola and other

soft drink brands. But was the scene same 20 years ago? The answer is

No. 1970 was the year of pure soft drinks Campa cola and Parle people

(Thums up and Limca).

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Soft drink consists of a flavor base, sweetener amid carbonated water. In

general terms non-alcoholic drinks are considered as soft drinks this

name soft drink was given by Americans as against hard which is

mainly alcoholic.

The major participants involved in the production and distribution of soft

drink are concentrate and syrup producers, bottlers and retail channel.

Concentrate producers manufacture basic soft drink flavors and retail channel

refers to business location that tells or serves the products directly to

consumers.

Soft drink is not a product, which a person plans to buy before hand, but is an

impulse purchase. Lots of sale depends upon the strength of

merchandizing done at the point of sale.

It all begin in 1977, a change in government at the center led the exit of Coca-

Cola which preferred to quit rather to dilute its equity to 40% in compliance

with the Foreign Exchange Regulation Act (FERA). The first national cola

drink to pop up was double seven. Delhi oil coke’s exit, switched over to

Campa Cola.

The beginning of 1980’s saw the birth of another cola drink, Thums

up, Parle the Gold spot people, launched it in 1978-79, as “Refreshing Cola”.

By the mid-eighties Mc Dowells launched Thrill, and by the late eighties

three was Double Cola, which entered in India market, as a NRO-run out

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fit with its plant in Nasik { Maharastra }, in 1978 Parle, Indian soft drink’s.

market (share 33%) with its gold spot and Limca brands. Later Thums Up

also started ‘Thums Up. At the same time the threat to the Indian soft

drinks was that of fruit drinks. In 1988, fruit drinks market was valued

at Rs. 40 crores and grew at the rate 20%.

Coca-Cola entered Indian by buying up to 69% of the 1,800 crore soft drink

market { i.e. 5 Parle Export brands of Thums Up’s Limca Gold spot,

Citra & Maaza }.Today the scene has changed making it a direct battle

between two giant Coca-Cola and Pepsi. The picture will become

clearer by looking at the India market shares in the beverage industry.

One of the strongest weapons in Coke armory is the flexibility it has

empowered its people with.

In Coke every employee, may he be a manager or salesman, have an authority

to take whatever steps lie or sloe feels will make the consumers aware

of the brand and increase its consumption.

Thus Coke believes in establishing and nurturing creditability of the

salesman and making commitment to grow business in accounts. All

these factors together led to a high growth in the Indian market and

constantly increasing market share.

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COMPETITIVE ARENA

The soft drink market all over the world has been witnessing a neck to neck

battle between the two major players, Coca-Cola and Pepsi since the very

beginning. The thirst quenchers are trying hard to have the major chunk of

the pie of carbonated soft drink market. Both the players are spending

their energies in building capacity, infrastructure, promotional activities

etc.

Coca-Cola being 11 years older than Pepsi has dominated the scene in

most of the soft drink markets in the world and enjoying leadership in terms of

market share. But the Coca Cola people are finding it hard to keep away

Pepsi, which has been narrowing the gaps regularly. The two are

posing threats to each other in every nook and corner of the world.

While Coca-Cola has been earning most of its bread and butter

through beverage sales, Pepsi has a multi products portfolio with some

portion from the same business.

The two warriors are face to face once again here in India with different

strategies and tactics to attack the rival. Coca-Cola is focusing upon the joint

ventures with the existing bottlers (FOBO) f ranch ise owned

bo t t l ing opera t ions to enhance its control on manufacturing and

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marketing of its products range and attain the quality standards of its

class.

Countering it Pepsi has taken the battle in its own hands by floating as

investment of $ 95 billion to set Pepsi Company. India holdings, as

subsidiary for {COBO} Company owned bottling operations. Both the

companies are following different path to reach the same destiny i.e. to

fetch the bigger portion of aerated soft drink market. Both consider

India a huge potential market, as per capita consumption here is a

mere 3 serving annually against the world average of 80. Therefore,

they are putting in their. Best efforts to woo the Indian consumer who

has to work for 1.5 hours to buy a bottle of soft drink. In comparison

to the international norms minutes, a major hurdle to cross over for

both the athletes for getting No.1 position comparison to the ‘inter.

Coca-Cola is well set with its 53 bottling sites through out the country

giving it an edge over competition by processing a well-built bottling

and distribution set-up. On the other hand, Pepsi, with two more years

in India, has been able to set an image of a winner in India and has

been able to get the pulse of the India soft drink market. The soft drink

giants are leaving on stone unturned and her for the long terms.

Coca-Cola has been penetrating the market through its wide product

range with a determination to change consumption pattern of soft drink in India.

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Firstly, they upgraded the whole industry by introduction 300 ml bottles,

which in turn had given the industry a booming growth of 20% as

compared to the earlier 5%. They want to develop a coca culture here

and are working on a strategy to offer soft drink in every possible

package. In Coca-Cola camp, the idea of competition has not come

from Pepsi, but from the other beverages such as tea, coffee, nimbu

pani, water etc. Pepsi is quite aggressive in its approach to Indian

Consumer.

They are desperately working on the strategy to be winners in the hot

cola war between two big barons. According to Pepsi philosophy, it’s

the madness that encourages executive to drink, to conjure up those

creative tactics to knock the fizz out their competition. Pepsi had

plumbed a large on the visibility of its blue red and white logo. They

have been going with aggressive marketing by putting Sachin Tendulkar,

Akshay Kumar and now Shahrukh Khan in their advertisement to endorse

their brand, the role models for its targeted consumer the teenagers.

They have increased the fizz in the market place by introducing the

dispensers called Fountain Pepsi and has been enjoying a lead over its

rival there.

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Coca-Cola on the other hand, has been working on the saying slow and

steady wins the race’s side by retailing to every more of its competitor. They

have procured the shield of Thums Up with a handsome market share in

Indian soft drink market.

Countering Pepsi’s international commercial that used two chimpanzees to

cock a snoop at coke, Thums Up come with the ad line, Don’t be

Bandar, taste the Thunder. Also Thums Up has been positioned now very

near to that young image of Pepsi and giving it a though time.

These cool merchants have put everything on fire. It Coke got the status of the

official drink of wills. World Cup, Pepsi blushed as nothing official

about it. As Thums Up projected as ‘Saaree Jahan Se Achcha’ Pepsi was

passionate enough with ‘Freedom to be’ and now the “Yeh Dil Mange

More” when Thums Up came with Thunder blast, the other offered ‘Pepsi

stuff card’. If red is meant for coke, Pepsi has ‘chosen to be blue.

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COKE’S MARKETING STRATEGIES

Coke decides on its marketing strategies at a national level and lends

them a local flavor. For example, while festival mood plays a strong role in

marketing, it is activated for Durga Puja in Calcutta, Dandiya in

Gujarat, etc., Coke has its focus on the youth market in India.

As a first step toward catching the attention of the youth, coke signed on cricket

heroes Saurav Ganguly and Javagal Srinath. It slowly started talking

about youth passions like cricket, films, festivals and food. Soon the

advertisements started giving the message, “Eat Cricket, Sleep Cricket,

Drink only Coca-Cola” And now it has started modifying film hits to

frame catch lines that appeal to the youth. ‘This particular strategy has

worked well for coke.

Coke is focused on distribution to ensure that its products are within

customer’s reach. And it saves its focus has begun to pay it dividends. As per

mid-1998 figures coke is selling as many bottles in the hinterland of

Punjab as it does the four metros.

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THE FUTURE OF COCA COLA

While doing business overseas offers Coke wonderful growth

opportunities it also has its own disadvantages. The economic

slowdown in various overseas markets and the strong dollar had their

impact on Coca-Cola revenues and bottom line in 1998. But the company

optimistic about the future.

M Douglas Investor, the Chief Executive Officer of the Coca Cola Company

says, “This past year 1998 has been a challenging period for the Coca-

Cola Company as ecoiioinic environment became more uncertain in the

later part of 1998, we strongly believe that our fundamental

opportunities for long term growth have not changed”.

As long as maximization of share holder wealth remain Coke’s focus for

its future is assured Goizueta had stated and proven to the world that focus on

shareholder wealth does more good to the company than focus on

revenues and it is not that coke does not enjoy volumes for it is world’s

No.1 soft drink manufacture. It is not content with this title and is

aiming at higher volumes year after year. Surely coke will continue to

grow. Point on Roberto had reduced the company basically to its

trademark and the returns are so astronomical as to be off the

boards. It just absolutely added a jet engine to their performance.

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COCA COLA GLOBALIZATION STRATEGIES

The Coca-Cola Company is global player and approximately 70 % of its

volume and 80 % of its profit come from outside the United States of

America. Although it was perceived as a standardized brand across the

world, Coca-Cola had been quietly fine turning its international

marketing strategies to suit the needs of individual national markets.

Only the brand Coca-Cola, sprite and Fanta were marketed globally. In

Latin America and Europe, where a heavy consumer preference existed

for lemon lime and orange sodas. Coke had developed a wide range of

formulations and flavors to cater the needs of different countries. In El

Salvador and Venezuela, a version of Fanta called Fanta Kolita a cream

soda type of drink became extremely popular. Similarly, in Indonesia

Coke had been selling pineapple and banana Limca, Maaza and Thums

Up in 1993.

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COCA COLA ANCHOR BOTTLERS

One of the driving forces behind coke’s bottling system are that is anchored

by 10 strategically signed business partners of the Coca-Cola Company, the

anchor bottlers.

Anchor bottlers are a group of select companies throughout the Coca-Cola

system that are distinguished by

A pursuit of the same strategies aims as the Coca-Cola Company in

the development of the non-alcoholic beverage business.

A commitment to long term growth.

Equity position by the Coca-Cola system.

Service to a large, geographically divers area.

Sufficient financial resources to make long-term investments.

Management expertise and depth.

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DISTRIBUTION IN THE COCA- CO LA SY S TEM

GETTING PRODUCTS TO MARKET

One of the values of the coca-cola system is presence that coca cola should

exist everywhere. In the words of former CEO India operations - Richard

Nicholas, “Our goal is to have coke available within an arm’s reach of

desire”. To fulfill this goal, coca-cola not only produces products, but also has

an effective systems to distribute the all over India.

DISTRIBUTION

Distribution Sales + Delivery + Merchandising + Local Account Management.

Distribution of Coke’s products includes the activities of sales, delivery

merchandizing and local accounts management. These are two major types

of distribution systems

DIRECT AND INDIRECT

In direct distribution, the bottler partner direct control over the activities of

sales, delivery, merchandizing and local account management.

In indirect distribution, an organization which is not a part of the coca-

cola system has control of one or more of the distribution elements (sales,

merchandizing and local accounts managements).

With direct distribution there are two types of sales:

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ADVANCED SALES AND CONVENTIONAL SALES

In conventional sales, all the distribution activities (Sales, Delivery,

Merchandizing and Local Accounts Management) are performed by the

same persons.

In advanced sales, sales and delivery are performed by different people within

the coca-cola system.

Difference between a customer and consumers .

A consumer is some one who drinks coca-cola products.

A customer is a business location which sells or serves coca-cola

products to consumers.

MERCHANDIZING

One the products are delivered to the customer’s they are promoted at

the point-of-purchase to maximize the company’s sales opportunities,

merchandizing involves looking at the presentation of the products through the

eyes of the consumers. It is ail on-going process that help the company

present its products properly to the consumers in the market place for

instance, is the display attractive? Are the product neatly organized.

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PRESENTING THE PRODUCTS

They are as follows: -

Secondary Display

Coolers

Vending Machines

Post Mix / Pre Mix

INDIA’S RELATIONSHIP WITH COCA-COLA

Just after independence, the Maharaja of Patiala oversaw his coca-cola hoarding

from his huge, ornate palace, Coca-Cola export representative Frank

Harrold, was awed by the Maharaja’s opulent life style. In 1993 after

coca-cola returned to India after a 16 year absence (beorge Fernandes threw the

company out of the country in 1977 on the pre text that it had refuse

to divalge its formula to Indian officials), CEO of the Coca-Cola

company, Robesto boirueta “Salivated over a virtually untapped market of 840

million people”.

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PROMOTION : THE COCA-COLA WAY

Goal for the 90’s

“To place coca-cola within an arm’s reach of desire.

CONSUMER ACTIVITY CLUSTERS: -

Grocery shopping

Other shopping & services

Eating and drinking

Entertainment / Recreation / Leisure

Travel / Transportation / Hospitality

Educational

At Work

THE 3A’S: -

The strategy for reaching in creasing numbers of consumers in India is

based on the belief that consumers will buy our products it they are

Available, Affordable and Acceptable.

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STRATEGIES FOR THE 3A’S

Focus on the consumer and customer.

To provide quality customer services, and caring about the quality of

performance in respective jobs.

Caring enough about what we do, to it the best we know how.

The 3A’s is Coca-Cola underlying strategy for meeting its goal to reach

increasing numbers of consumer’s. How does coke position its limited

resources to help meet its good? Let us explore the specific ways in which

the Coca-Cola system addresses each of the 3A’s.

AVAILABILITY

Some of the ways in which, the Coca-Cola Company hopes to increase

availability of its product include improved or innovative packaging,

dispensing systems, distributions system, marketing.

AFFORDABILITY

The ways to address affordability include pricing decisions, as well as

resource management. To make its product available at a price affordable to the

consumer. Continually processes more efficient and therefore more cost-

effective.

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ACCEPTABILITY

Making coca-cola brand products the beverage choice for any

occasion’s depends on a variety of strategies to reach the target

audience. The common strategies adopted to effect acceptability which

youth market activities, community programs, and other activates.

THE IMAGE

The image is communicated all around the world in advertisement on

media such as newspaper, magazines, radio and televisions. The list

goes on.

However, image is much more just advertising every person working

within the coca-cola system is part of the image whether one is

involved in creating its advertising making its quality products or

selling merchandizing and distributing its beverage their hard work

and aptitude will say something to the people about its product.

Coca-cola system flow chart

Raw material

Coca-cola Company

Bottler

Customer

Consumer

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SEGMENTATION

The soft drink market can be segmented on the basis of place of consumption or

on the basis of type of products. The segmentation on the basis of place of

consumption divides the market into two parts: -

On-premise-80% of the consumption of soft drinks is on premise i.e.

restaurants, railways stations, cinema etc.

At-home- the rest 20% of the market compromises of the soft drink

purchased for consumption at home.

The market can also be segmented on the basis of types of products into cola

products and non-cola products.

Cola products account for nearly 61-62% of the total soft drinks market.

The brands that fall in this category are

Pepsi, Coca-Cola, Thumps Up, diet coke, Diet Pepsi etc.

Non-cola segment which constitutes 36% can be divided into 4 categories

based on the types of flavours available, namely:

Orange

Cloudy Lime

Clear Lime

Mango

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i. ORANGE

Flavour based soft drinks constitute around 17% of the market.

Tie segment is largely dominated by national brands like Fanta of Coca

Cola and Miritida Orange of PepsiCo, which collectively forth 15% of the

market rest of the market is in hands of smaller brands like

Crush( earlier of Cadbury Schweppes and now of coca Cola), Gold

Spot etc.

ii. CLOUDY LIME

Flavour constitutes 14% of the market and is largely

dominated by Limca of coca cola and Miranda Lemon of PepsiCo. Limca is

the market leader with around 70-75% of the market followed by

Miranda Lemon.

iii. CLEAR LIME:

This segment of the market witnessed good growth initially

with all the players launching their brands in the segment. But now the

growth in the segment has slowed down. The brands available in this

segment are. 7 Up of Pepsi, Sprite of ‘ Coca Cola and Canada Dry

(earlier of Cadbury Schweppes and now of Coca cola). The segment

constitutes 3% of the total soft drinks market.

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iv. MANGO :

This flavour segment constitutes 2% of the total soft drinks

market and it directly competes with mango based fruit drinks like

Frooti. The leading brands in this segment are: Maaza of Coca Cola,

Mangola (Earlier of Dukes now of PepsiCo) and Slice of PepsiCo.

There is very thin line of difference between the clear and cloudy lime. The

most obvious feature is that clear lime has to be bottled in green

bottles as sunlight harms the drink and changes the taste.

There are some small local brands at city or regional levels. Most of these are

either merging with the two big players (Coca Cola and Pepsi) or they command

a very small - less than 3%, of the total market ill their respective areas.

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43

PRODUCT PROFILE

The product range of the coke has listed brands:

Coke: 200ml, 300ml, 500 ml, 1lt, 1.5lt, 2lt.

Thums up: 200ml, 300ml, 500 ml, 1lt, 1.5lt, 2lt.

Limca: 200ml, 300ml, 500 ml, 1lt, 1.5lt, 2lt.

Fanta: 200ml, 300ml, 500 ml, 1lt, 1.5lt, 2lt.

Sprite: 300ml, 500 ml, 1lt, 1.5lt, 2lt.

Mazza: 300ml, 2lt.

Diet coke: 300ml, 1.5 lt, 2lt.

Kn. Soda: 300ml, 500ml

Kn. Water: 500ml, 1lt, 2lt.

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45

RESEARCH METHODOLOGY

Research Design specifies the methods and procedures for conducting a

particular study. A Research Design is the arrangement of conditions for

collection and analysis of the data in a manner that aims to combine relevance to

the research purpose with economy in procedure. Research Design is broadly

classified into three types as

1 Exploratory Research Design

2 Descriptive Research Design

3 Hypothesis testing Research Design

On the basis of the objective of study, the studies which are concerned with

describing the character tics of a particular individual, or of a group of individual

under study comes under Descriptive Research Design.

Descriptive Research Design: In this research design the objective of study is

clearly defined and has accurate method of measurement with a clear cut

definition of population which is to be studied.

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FORMULATING THE RESEARCH PROBLEM

Two steps are involved in formulating the research problem:

1 Understanding the problem

2 Rephrasing the problem into meaningful terms from an analytical point of

view.

The training sessions are conducted in the beginning of training in order to make

us clear about the task provided and how to handle the different situations.

PREPARING THE RESEARCH DESIGN

The research design is developed to collect the relevant information with

minimum of efforts, time and money.

Marketing Research Objectives:

1 To undertake a prior market study before doing owns research.

2 Type of Study: Descriptive.

3 Research Area: Meerut.

4 Source of Information: Primary Data.

5 Data Collection Instrument: Book and Magazine.

6 Research Approach: Survey Method.

SAMPLING DESIGN

A Sample Design is a definite plan for obtaining a sample from a given

population. It refers to the technique or the procedure adopted in selecting items

for the sample. The main constitution of the sampling design is as below-

1. Sampling Unit

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2. Sample Size

3. Sampling Procedure

SAMPLING PROCEDURE

The procedure to choose the respondents to obtain a representative sample, a

non-probability sampling technique is applied for the target – market.

Non-Probability Sampling:

It is a purposive sampling which deliberately chooses the particular units of the

universe for constituting a sample on the basis that the small mass that they so

select out of a huge one will be typical or representative of the whole.

Judgment sampling:

To select population members who are good prospects for accurate information?

DATA COLLECTION

The survey process is not complete without consulting the Distributor & Retailers

and customers. The distributors are the key nodes that make the chain moving

effectively. So the response made by them is also an essential criterion to

involved and reaching for certain decisions.

There are several ways of collecting appropriate data that differ considerably in

the context of money costs, time, and other resources at the disposal of the

researcher. The tools used for data collection are as:

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PRIMARY DATA

The primary data are those data, which are collected afresh and for the first time.

And happen to be original in character. The primary data to be collected for the

study are-

Direct Personal Interview – Under this method of collecting data there is face-

to-face context with the person from whom the information is obtained. The data

collected are from the respective selected doctors and chemists visited regularly.

The pattern used is Structured and Indirect Interview.

SECONDARY DATA

Secondary data means data that are already available i.e., they refer the data,

which have already been collected and analyzed by someone else. When the

researcher utilizes secondary data, then he has to look into various sources from

where he can obtain them, IN this case he is certainly not confronted with the

problems that are usually associated with the collection of original data.

Secondary data may either be published data or unpublished data. Usually

published data are available in:

1. Various publications of the central, state and local governments;

2. Various publications of foreign government or of international bodies and

their subsidiary organization;

3. Technical and trade journals:

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4. Books, magazines and newspapers;

5. Reports and publications of various associations connected with business

and industry, banks, stock, exchanges etc.;

6. Reports prepared by research scholars, universities, economists etc. In

different fields, and

7. Public records and statistics, historical documents, and other sources of

published information. The sources of unpublished data are many; they

8. May be found in diaries, letters, unpublished biographies and

autobiographies and also may be available with scholars and research

workers, trade associations, labor bureaus and other public/private

individuals and organizations.

The data collected from the various efforts and sources are Analyzed and as

shown distinctively from the next page.

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PROJECT AREA

Taj Ganj Raja Mandi

Piple mandi Ram bagh

Kent Agra Rue Mandi

Singi Gali Agra Hathi Ghat

RESEARCH OBJECTIVES

The main aim behind the dealers survey to know about the reach of Miranda

lemon and get a comparative position of coke and Coca cola. By the help of

certain chart and graphs as shown on the following pages with the help of their

pictures we can easily make certain conclusion.

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52

DATA ANALYSIS AND INTERPRETATION

The soft drink market of India are by and large controlled and governed by the

two soft drink giant company, Coca cola and Pepsi.

The only presence of the two giant company does’t mean absence of

competition rather a neck to neck competition, a dual strategy and counter

strategy is all time present to capture a greater market share. For extracting the

total market strength, two companies have a wide variety of soft drinks.

Different flavor and different packs are available form both the companies.

Let us take a glimpse of the different falvour available for both companies.

FLAVOUR COCACOLA PEPSI

1. Cola Thumsup, Coke Pepsi

2. Clear lemon Sprite Mountaindew, 7-up

3. cloudy lemon Limca Lemonmirinda

4. orange Fanta Mirinda

5. fruit juice Mazza Slice

6. soda Kinely Everess

7. Vanilla Vanillacoke No flavour

8. Water Kinely Aquafina

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Q-1 Which brand you prefer in your outlet?

INTERPRETATION:-

This chart shows that 60% have stock of cock and 40% have

stock of pepsi in outlets.

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Q-1 Which type of sign board having you?

INTERPRETATION:-

This chart shows that 41% outlets have clear sign board. 12%

of outlets have partially clear board and 47% outlets have clear sign board.

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Q-3 Are you having warm Display of sign Board to Attract Customers?

INTERPRETATION:-

This chart shows that 33% outlets have partially warm display.

61% of outlets have clear warm display and 6% outlets have no warm display.

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Q-4: Are you having Cold Display of sign Board to Attract Customers?

INTERPRETATION:-

This chart shows that 30% outlets have good display. 14% of

outlets have partially cold display and 56% outlets have no coke fridge.

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Q-5: Are you having All Range of Flavour and Packs ?

INTERPRETATION:-

This chart shows that 12% outlets have no range of flavours

and packs and 88% outlets have all range of flavors and pack.

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Q-6: which Media of Advertising is superior to attract the customers?

INTERPRETATION:-

This chart shows that 3% of total advertising of coca-cola by

radio . 5% of total advertising of coca-cola by pump let. 16% of total

advertising of coca-cola by hording and 76% of total advertising of coca-cola

by television.

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Q-7:Which area is covered by you?

INTERPRETATION:-

This chart shows that 10% of total retailer covers Taj Mahal.

15% of total retailer covers Bijli ghar. 15% of total retailer covers Loha mandi

and 20% of total retailer covers Piple Mandi.

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62

SWOT ANALYSIS

In a most competitive market like soft drinks, one has to be very strategic

against all the business activities of the rivals. A constant review of the market

situations and fitness of the self is the must to keep in line with the

competition. Specially in the soft drink market, it has a rivalry, which is more

than any other industry, where each player tries to maximize its market share

on the cost of others. Packaging is one where there is a very crucial battle

going on. This battle is in fact called the mother of battle in Indian soft drink

market. One of the major tools of this battle is of course packaging. To win

the situation coke must analyze the external environment to identify threats

and opportunities to adopt to the strategic fit. For this internal strengths and

weakness must be analyzed.

STRENGTHS

1. Coke is the most popular brand in world.

2. Coke is enjoying maximum market share in the Indian market. In fact it is

more than 50%.

3. Coke is being backed by a strong force of 53 franchises.

4. Coke is having an edge over pepsi by having a large number of products.

5. The shape of bottle of coke is much more attractive than Pepsi.

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6. Crate of coke is not attractive but also more safer for the glass bottles in

comparison to Pepsi.

7. Bottle crown quality of coke is much better than pepsi, due to its

workability as there are complaints of rusting in and around the crown of

pepsi. This is more common during the rainy season.

8. Coke has takeaway bottles which are not available with pepsi in 250 ml.

bottles.

9. Parle’s strength ahs directly come to come without doing much efforts in

establishing themselves.

10. Coke of 200ml . Has infact increased the overall sales of cola marker.

11. The writing style of coke is more attractive than pepsi.

12. The can of thums up which belong to coke is more appealing due to its

colour schem.

WEAKNESS

1. There are complaints of coke can regarding leakage.

2. The Pepsi is attracting new generation segment due to availability of

fountains , this is being lacked by coke where fountain machines overall in

comparison to Pepsi are less. Specially in Agra, there is no fountain

machine of coke available, whereas Pepsi has 35 machines.

3. Form the retailers of coke, it was also notice that limca bottles have a

problem of chip i.e. on operating the glass cracks slightly

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OPPORTUNITY

1. The market growth rate is very high infact 30% per annum.

2. The brand name coke speak most highly i.e. coke is at the top of the mind

among consumers.

3. The growing market may be captured with greater number of package in

run it is a threat to Pepsi as the market demand is very heterogeneous.

4. The launching of 250 ml coke has seen the overall growth in coca segment.

5. Thumps up cans adopting the blue color has infact eaten the main plant of

Pepsi of its blue color.

THREATS

1. The threats risk of potential entrants due to Cadbury’s future entry are very

considerable.

2. Local lemon soda is also a big threat to coke, as most of the buying power

of lower class segment is exhaust by these bottles.

3. The threats of seasonal drink like fruit juice are also considerable as the

time of peak season; the rates are Rs. 4/- per large glass.

4. Pepsi adopted a strategy to lower down the prices against the launch of 200

ml coke.

5. The inclination of new generation is towards pepsi due to color concept

adopted by the company.

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FINDINGS

After visiting nearly 100 cutlets I found that there are some common problem of

retailers which are as follows.

1. The first and the major problem among the retailers are non-availability of

Coke’s all ranges of flavours and packs.

2. The second problem is faced by retailers is that they do not want to

display the warm and cold display because it will consume their time

and place.

3. Retailers are asking about schemes. They are complaining that they are not

getting proper facilities, although their sale is very good. They do not

have chairs and tables and in some cases if they have it is not in good

condition.

4. The other problem is that equipments provided by the

company (freeze) are not in good condition which is

affecting their sale in season.

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CONCLUSION

Following are the certain conclusions from consumer’s survey.

1. The comparative sale of Coca cola and is near about equal. Coca cola is

getting a lead by the help of its coca flavour.

2. Limca is in a far better position in lemon flavour.

3. Consumer likes only the aid of Miranda lemon they not want to try

Miranda lemon.

4. Fountain Coca cola is not easily available in Muzaffarnagar. But if it will

be there than there is a chance of better sales.

5. Coca cola have a sale of 56% in cola flavour.

6. But overall sale of all favors in near about equal Coca cola have 51% of

soft drink market while coke have 49% of share market.

7. The advertisement of Coca cola and Miranda lemon is mostly liked by the

maximum people.

8. There is a big scope for fountain Coca cola in cinema halls, shopping

complex, bus stand railway station etc.

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LIMITATIONS

Following are the certain limitations, which I face during the competition of my

project report.

1. Many people in from rural area they feel themselves unsuitable for the

answer.

2. Small size of sample.

3. I have done my project in December and January so there is chance of

variation in the result of survey.

4. Many people don’t give answer of all questions.

5. Look of sufficient time for the proper administration of the research

because time is very important to do a research. Time of two months has

been allocated which is very small and not sufficient for cover the all of

the area.

6. Non-availability of the money was the second limitation of this study.

Since the researcher has to find his study by his own source of finance.

The lack of financial sources was another of this study.

Since the research has been conducted on the human being who were the retailer

of the different brands of soft drinks. Human behaviors are the changing

phenomenon.

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RECOMMENDATIONS

Following are certain recommendation according to the consumer’s survey:

1. The Coca cola should be stronger.

2. Miranda lemon also should be strong with a flavour something

extraordinary.

3. More scheme should be introduced with Miranda lemon,

4. New flavour should be introduced in India soft drink market.

5. Distribution channel must be improved.

6. There must be less foam more liquid in the glass of fountain Coca cola.

7. Fountain Coca cola should b more strong.

8. Glass quality of fountain Coca cola should be improved.

9. Fountain Coca cola should be easily available everywhere.

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SUGGESTIONS

In cold drinks Coke and Thumps Up have strong brand awareness and

availability but Pepsi itself has a strong availability in comparison to its

competitions. So the company should try to make coke, Limca, Thums

Up and other brand widely available.

Company should motivate the retailers to display its brand effectively,

for this they should provide the free samples for display.

Communication gap between retailers and management should be

reduced.

Problems of the retailers should solved by the company in most

possibly lesser time.

Sales promotion should be implemented with in time and should

live up to the promise kept.

Sprite, Kinley Soda is not much popular so, Coca-Cola should try to

promote these less popular brands through increase their visibility in

warm and cold display.

Salesman distributing products should carry and provide all the brands

to all retailers.

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Time to time visit of routes should be done by senior executives, so that

problem in the market are solved effectively, Remember a officer or

executive can convince them more what a salesman can not do.

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QUESTIONNAIRE

Name: …………

Address: …………… Telephone No. ……………

Q-1 Which brand you prefer in your outlet?

1. Coca cola [ ] 2. Pepsi [ ]

Q-2: Which type of sign board having you?

1. Partially Clear 2 Clear Sign

3. No Sign Board

Q-3 Are you having warm Display of sign Board to Attract Customers?

1. Partially Display 2 Clear display

3. No display

Q-4: Are you having Cold Display of sign Board to Attract Customers ?

1. Partially 2 Good display

3. No coke fridge

Q-5: Are you having All Range of Flavour and Packs ?

1. No Range 2. OK

Q-6: which Media of Advertising is superior to attract the customers?

1. Hording 2. T.V

3. Radio 3. Pumplet.

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Q-7:Which area is covered by you?

1. Bijli Ghar 2. Piple Mandi

3. Loha Mandi 4. Taj Mahal

5. Taj Ganj

Q-8: Behavior of salesman of coke

(a) Outstanding (b) Good

(c) Average (c) Poor

Q-9: which Company provide better service

(a) Coke (b) Pepsi (c) Other

Q-10: In the buying situation what do you prefer?

(a) Brand (b) Price

(c) Scheme (d) Any another

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BIBLIOGRAPHY

REFERENCE BOOK

Marketing Research (Author- G C Beri)

(Publish by Tata McGraw Hill Publishing Co. LTD., New Delhi)

Third Edition(2002).Page No.135, Para 3

Marketing Management (Author- Philip Kotler)

(Publish by Pren Tice-hall of India PVT. LTD., New Delhi)

Ninth Edition(2002) Page No.292, Para 2.

Research Methodology (Author- Bhandrai)

Print 2004, second edition. Page No.115, Para 3.

NEWS PAPERS

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WEB SITES:

http://www.google.co.in/search?hl=en&q=coca+colacola&meta=&aq=f&oq=

http://www.coca-cola.com/template1/index.jsp?locale=en_GB

http://www.coca-cola.com/index.jsp

http://en.wikipedia.org/wiki/The_Coca-Cola_Company

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